# Chinese buyers look to cancel U.S. soybean orders as processing margins shrink | Financial Post

> Some Chinese soybean importers and processors are seeking to cancel deals for U.S. cargoes for December and January shipment after crush margins turned negative following a steep Chicago futures rally. Traders say the move targets buyers who purchased cargoes without locking in futures prices. It is described as the first sign of slowing Chinese demand after a five-month buying spree.

- Date: 2020-11-25 · published 2020-11-25T12:00:00.000Z
- Category: trade · region China · magnitude medium
- Page: https://feedsoft.ai/events/50175-chinese-buyers-look-to-cancel-u-s-soybean-orders-as-processing-margins-shrink
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Cancellations would reduce near-term U.S. export demand and could weigh on soybean and meal prices, though soybean meal demand from the crush sector is the key link. Negative crush margins suggest Chinese demand may soften after the recent price surge.

## Read by commodity

- SBM: bearish ▼
- SBO: neutral
- SOY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2024-01-17 | [China's Q1 Soybean Imports Slow to Four-Year Low as Pig Herds Shrink - Pork Business](https://feedsoft.ai/events/32120-china-s-q1-soybean-imports-slow-to-four-year-low-as-pig-herds-shrink-pork.md) | +1.0% | -3.3% |
| SOY | 2022-05-03 | [Chinese soybean crushers slow bean buying on poor margins - Manitoba Co-operator](https://feedsoft.ai/events/14933-chinese-soybean-crushers-slow-bean-buying-on-poor-margins-manitoba-co-operator.md) | -3.2% | +0.6% |
| SOY | 2017-06-05 | [China cancels soy orders as losses mount in crushing](https://feedsoft.ai/events/70565-china-cancels-soy-orders-as-losses-mount-in-crushing.md) | +2.2% | +2.3% |
| SOY | 2023-10-27 | [China increases imports and processing of soybeans and cancels purchase agreements](https://feedsoft.ai/events/33616-china-increases-imports-and-processing-of-soybeans-and-cancels-purchase.md) | +1.9% | +4.0% |
| SOY | 2021-12-02 | [China to cut U.S. soy imports after shipping delays clip export window \| Financial Post](https://feedsoft.ai/events/43629-china-to-cut-u-s-soy-imports-after-shipping-delays-clip-export-window-financial.md) | +2.7% | +8.1% |
| SBM | 2024-01-17 | [China's Q1 Soybean Imports Slow to Four-Year Low as Pig Herds Shrink - Pork Business](https://feedsoft.ai/events/32120-china-s-q1-soybean-imports-slow-to-four-year-low-as-pig-herds-shrink-pork.md) | -2.1% | -5.9% |
| SBM | 2022-05-03 | [Chinese soybean crushers slow bean buying on poor margins - Manitoba Co-operator](https://feedsoft.ai/events/14933-chinese-soybean-crushers-slow-bean-buying-on-poor-margins-manitoba-co-operator.md) | -6.7% | -1.8% |
| SBM | 2017-06-05 | [China cancels soy orders as losses mount in crushing](https://feedsoft.ai/events/70565-china-cancels-soy-orders-as-losses-mount-in-crushing.md) | +1.3% | +0.8% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/chinese-buyers-look-to-cancel-u-s-soybean-orders-as-processing-margins-shrink

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.